The dynamic effects of transformational leadership on employee retention and employability over time: an agent-based model

Abstract

Employee retention is a problem for organizations of all sizes. Research has shown that transformational leaders improve retention and reduce turnover; however, there has been little research on the effects of transformational leadership on retention over time while also considering employees’ changing employability. We use agent-based modeling to demonstrate these changing relationships while considering the nature of modern organizations. Our model looks at the relationships between transformational leaders, individual employability, and retention. The model uses data from earlier research to define parameters for these variables, showing how workers and leaders interact and affect employability and retention and how these effects change over time.